Mr Drumm was scheduled to give evidence on Wednesday from the United States.
The D.P.P. has also suggested she would try and stop the inquiry if it rejected the advice and tried to proceed.
David Drumm – who was CEO of Anglo – sent the banking inquiry a written statement, and offered to give his evidence by video link from the United States where he now resides.
Mr Drumm is wanted here by Gardai for questioning.
The inquiry sought legal advice on hearing the evidence via video link – it's own senior counsel has advised against the move.
The Director of Public Prosecutions also advised against hearing the evidence in such a way, and it's understood will consider a court application to stop it, should the inquiry reject the advice and try to proceed.
The inquiry team will meet in private tomorrow where it is expected to accept both pieces of legal advice and not proceed with a video link with David Drumm on Wednesday.
The members must also now decide whether to accept Mr Drumm's written statement as evidence.
